Question

Kingbird Corporation is authorized to issue 48,000 shares of $5 par value common stock. During 2017, Kingbird took part in the following selected transactions. 1. Issued 4,600 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $8,100. 2. Issued 1,000 shares of stock for land appraised at $48,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance. 3. Purchased 490 shares of treasury stock at $45 per share. The treasury shares purchased were issued in 2013 at $42 per share. (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit

Answer 1

No.	Account Titles and Explanation	Debit	Credit
(a)	Cash (4600*$48 -8100)	$212700
	Common Stock (4600 Shares x $5 par value)		$23000
	Additional Paid in Capital		$189700
(b)	Land	48000
	Common Stock (1000*5)		5000
	Additional Paid in Capital		43000
(c)	Treasury Stock (490*45)	22050
	Cash		22050
	Cash (490*42)	20580
	Retained Earnings	1470
	Treasury Stock (490*45)		22050